Should the Minimum Wage be raised to $10 per hour?
Currently, the federal minimum wage is $7.25 per hour. In a number of states, state laws have increased the minimum wage within the state to more than the federal minimum.
Some are proposing that the minimum wage be increased to $10.00 per hour to catch up with its historic purchasing power. In recent years, the wage has fallen far behind the cost of living. With more purchasing power, those making a higher minimum wage would spend more which would lead to a stimulus to the overall economy. Those opposed say that increasing the wage will lead to fewer unskilled positions being offered... including the kind of first jobs and summer jobs that teenagers take to enter the work force.
Don't forget that minimum wage jobs rarely if ever carry any benefits... and holding one minimum wage job even full time isn't enough to support a family. Also, employers may of course offer more than minimum wage. They are just not allowed to pay less... except in certain jobs such as restaurant work and others where tips or sales commissions add to an employee's wages.
What do you think?
A great pair of opposing editorials on this topic was published in the Sunday, April 15th Plain Dealer in the Editorial section. A copy is posted to the new Mock Congress / Current Events bulletin board
(As Mock Congress approaches you'll need to do more economic thinking... both about costs and unintended consequences.)
Should the Minimum Wage be raised to $10 per hour?
Currently, the federal minimum wage is $7.25 per hour. In a number of states, state laws have increased the minimum wage within the state to more than the federal minimum.
Some are proposing that the minimum wage be increased to $10.00 per hour to catch up with its historic purchasing power. In recent years, the wage has fallen far behind the cost of living. With more purchasing power, those making a higher minimum wage would spend more which would lead to a stimulus to the overall economy. Those opposed say that increasing the wage will lead to fewer unskilled positions being offered... including the kind of first jobs and summer jobs that teenagers take to enter the work force.
Don't forget that minimum wage jobs rarely if ever carry any benefits... and holding one minimum wage job even full time isn't enough to support a family. Also, employers may of course offer more than minimum wage. They are just not allowed to pay less... except in certain jobs such as restaurant work and others where tips or sales commissions add to an employee's wages.
What do you think?
A great pair of opposing editorials on this topic was published in the Sunday, April 15th Plain Dealer in the Editorial section. A copy is posted to the new Mock Congress / Current Events bulletin board
(As Mock Congress approaches you'll need to do more economic thinking... both about costs and unintended consequences.)